RPT-BOJ must avoid premature exit from easy policy -nominee Wakatabe

Reuters Staff

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TOKYO, March 5 (Reuters) - The Bank of Japan must avoid a premature exit from its ultra-easy policy to ensure the economy is completely out of deflation, Masazumi Wakatabe, a nominee for BOJ deputy governor, said on Monday.

“What’s most important is to make a full exit from deflation. The BOJ’s 2 percent inflation target is effective and meaningful for this purpose,” Wakatabe said in a confirmation hearing in the lower house of parliament.

“Prematurely shifting the BOJ’s easy policy could pull Japan back to deflation,” he said, adding that the BOJ must be ready to ramp up stimulus if doing so is needed to hit its price goal. (Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Chris Gallagher)